Employing in the Netherlands

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Expanding into
the Netherlands

Expanding into the Netherlands can be characterised by a productive and international workforce, complex employment and tax laws, a robust infrastructure network linking to the rest of Europe, as well as the title of Europe’s most competitive market, with leading sectors in agriculture, creative industries, energy, and high-tech systems and materials – can bring excitement to the possibilities but also significant stress to ensure compliance with the rigorous country’s legislation when setting up an entity.

Main sectors of Dutch economy
Main sectors of Dutch economy

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Global Expansion is a step to make for any business, regardless of your goal. But the opportunities that can come with an expansion can be stimulating as well as intimidating and confusing, especially when you consider all of the registration procedures that need to be done and the documentation required.

Going at it without the proper support can increase the costs, time and risks involved.

The legwork and potential red tape can be worked through more efficiently and cost-effectively with the support of a Professional Employer Organisation (PEO) such as Bradford Jacobs, primarily through our Employer of Record (EOR) framework.

It can be best utilised when businesses are just beginning their expansion process and require more information before incorporating an entity and fully establishing themselves in that market.

Country EOR Guide - Bradford Jacobs

Download our Guide to the Netherlands

Learn all about expanding into the Netherlands and see what we can do to make your expansion easier.

Download our Guide to the Netherlands

Learn all about expanding into the Netherlands and see what we can do to make your expansion easier.

Country EOR Guide - Bradford Jacobs

Hiring Staff
in the Netherlands

Hiring Staff
in the Netherlands

The Main Sectors of the Dutch Economy

The country focuses on the following key sectors, which all have a significant impact on the country’s economy:

The Netherlands is one of the world’s largest exporters in agricultural and food products, even though it contributes only 1.5% of the country’s national GDP.

The Dutch Creative Industry has been strengthening in recent years, gaining a strong reputation and international acclaim in areas such as interior design, gaming, and fashion. The annual turnover of these industries is over 7.1 billion euros.

The country is also a leading European supplier of chemical products and services, with easy access to the required raw materials. The chemical industry turned over a respectable 52 billion euros in 2019.

The Netherlands boasts a strong reputation in the areas of renewable energy such as wind farming and biomass processing, energy efficiency, as well as greenhouse farming. Energy provides a substantial contribution to the local economy, forming part of the services sector which contributes about 70% of the country’s GDP.

Dutch high-tech industries are amongst the most innovative in the world, due to the country’s state-of-the-art facilities, and pioneering research and development. Dutch knowledge and products are sought after and exported worldwide. These industries benefit from strong government support, with over 2 billion euros being invested in R&D yearly.

The Netherlands is the leading trendsetter and a global market leader in various aspects of greenhouse technology, such as flowers, plants, bulbs, reproductive material, and nutritional horticultural products. In 2018, this sector contributed about 21 billion euros to the country’s economy.

The Dutch Life Sciences and Health sector competes on a global scale, due to strong links between industry and academia, focused clusters, and strong chains linking research to product and business creation. These industries also benefit from strong government support, with over 2 billion euros being invested in industry R&D yearly.

The Dutch finance industries are leading the way in finance and Fintech, bringing traditional finance services into the future with tech innovation, research, development, as well as digital infrastructure. Amsterdam is also the world capital of green finances and ranks as the 2nd biggest fintech nation in the EU.

The Netherlands is also a world leader in water management, shipbuilding, and sustainable systems for water production, supply, and partial recycling of “used” water.

The Main Sectors of the Dutch Economy

The country focuses on the following key sectors, which all have a significant impact on the country’s economy:

Main Sectors of the Dutch Economy

The Netherlands is one of the world’s largest exporters in agricultural and food products, even though it contributes only 1.5% of the country’s national GDP.

The Dutch Creative Industry has been strengthening in recent years, gaining a strong reputation and international acclaim in areas such as interior design, gaming, and fashion. The annual turnover of these industries is over 7.1 billion euros.

The country is also a leading European supplier of chemical products and services, with easy access to the required raw materials. The chemical industry turned over a respectable 52 billion euros in 2019.

The Netherlands boasts a strong reputation in the areas of renewable energy such as wind farming and biomass processing, energy efficiency, as well as greenhouse farming. Energy provides a substantial contribution to the local economy, forming part of the services sector which contributes about 70% of the country’s GDP.

Dutch high-tech industries are amongst the most innovative in the world, due to the country’s state-of-the-art facilities, and pioneering research and development. Dutch knowledge and products are sought after and exported worldwide. These industries benefit from strong government support, with over 2 billion euros being invested in R&D yearly.

The Netherlands is the leading trendsetter and a global market leader in various aspects of greenhouse technology, such as flowers, plants, bulbs, reproductive material, and nutritional horticultural products. In 2018, this sector contributed about 21 billion euros to the country’s economy.

The Dutch Life Sciences and Health sector competes on a global scale, due to strong links between industry and academia, focused clusters, and strong chains linking research to product and business creation. These industries also benefit from strong government support, with over 2 billion euros being invested in industry R&D yearly.

The Dutch finance industries are leading the way in finance and Fintech, bringing traditional finance services into the future with tech innovation, research, development, as well as digital infrastructure. Amsterdam is also the world capital of green finances and ranks as the 2nd biggest fintech nation in the EU.

The Netherlands is also a world leader in water management, shipbuilding, and sustainable systems for water production, supply, and partial recycling of “used” water.

Commercial Laws in
the Netherlands

The Dutch Civil Code, Dutch Tax and Customs Administration (Belastingdienst) and the Ministry of Social Affairs and Employment all figure in establishing legal parameters in the Netherlands. The European Union (EU) directives also come into play along with Collective Labour Agreements (CAOs).

The combination of different laws provides comprehensive protection for employees in the Netherlands with mandatory provisions covering topics such as working hours, minimum wages, paid vacations, health and safety, anti-discrimination, illness, and injury benefits.

  • The Dutch Tax and Customs Administration (Belastingdienst)
  • The Social Security Bank (SVB), which coordinates the Dutch social insurance systems – national insurance (for individuals living in the Netherlands), and employee insurance (for those working in the country).
  • The Employee Insurance Agency (UWV)– this operates under the Ministry of Social Affairs and Employment (SZW) and handles benefits covering such as unemployment and sickness.

When it comes to employment contracts, according to the law, all contract types must include the following information:

  • full details of employer and employee
  • employment location and employee’s role
  • usual working hours
  • start date of contract and end date if fixed term
  • salary and payment schedule
  • any probationary period
  • holiday entitlement
  • notice period

However, there are a number of different contract types, and each type also has their own rules to follow.

  • Permanent or Indefinite Employment Contracts (Vast contract)
  • Fixed term Employment Contracts
  • Temporary Employment Contracts (tijdelijk contract)
  • Probationary or Trial Period Employment (Proeftijd) 
  • Recruitment Agency Employment Contracts (Uitzend contract) 
  • Freelance Employment Contracts (DBA modelovereenkomst) 

Commercial Laws in
the Netherlands

Laws Affecting Your Business in the Netherlands

The Dutch Civil Code, Dutch Tax and Customs Administration (Belastingdienst) and the Ministry of Social Affairs and Employment all figure in establishing legal parameters in the Netherlands. The European Union (EU) directives also come into play along with Collective Labour Agreements (CAOs).

The combination of different laws provides comprehensive protection for employees in the Netherlands with mandatory provisions covering topics such as working hours, minimum wages, paid vacations, health and safety, anti-discrimination, illness, and injury benefits.

  • The Dutch Tax and Customs Administration (Belastingdienst)
  • The Social Security Bank (SVB), which coordinates the Dutch social insurance systems – national insurance (for individuals living in the Netherlands), and employee insurance (for those working in the country).
  • The Employee Insurance Agency (UWV)– this operates under the Ministry of Social Affairs and Employment (SZW) and handles benefits covering such as unemployment and sickness.

When it comes to employment contracts, according to the law, all contract types must include the following information:

  • full details of employer and employee
  • employment location and employee’s role
  • usual working hours
  • start date of contract and end date if fixed term
  • salary and payment schedule
  • any probationary period
  • holiday entitlement
  • notice period

However, there are a number of different contract types, and each type also has their own rules to follow.

  • Permanent or Indefinite Employment Contracts (Vast contract)
  • Fixed term Employment Contracts
  • Temporary Employment Contracts (tijdelijk contract)
  • Probationary or Trial Period Employment (Proeftijd) 
  • Recruitment Agency Employment Contracts (Uitzend contract) 
  • Freelance Employment Contracts (DBA modelovereenkomst) 

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